Mizuho has raised its price target for Royal Caribbean Cruises Ltd. (NYSE:RCL) to $380 from $377, maintaining an Outperform rating on the stock.
The adjustment follows the cruise operator's first-quarter 2026 financial results released on April 30.
Strong Q1 Performance
Royal Caribbean reported $4.5 billion in revenue for the first quarter, an 11% increase year-over-year.
The company also posted a GAAP EPS of $3.48, surpassing management's initial guidance.
Management attributed the strong results to favorable revenue streams, lower operational costs, and solid performance from joint ventures.
The quarter also saw a record WAVE season and sustained demand across its brands, including Royal Caribbean International, Celebrity Cruises, and Silversea Cruises.
Gross margin yields grew by 6.9% as-reported, according to financial data.
Future Outlook
Looking ahead, Royal Caribbean projects revenue to increase by approximately 10% year-over-year.
Net yields are expected to rise between 2.3% and 3.3% in constant currency.
The company noted that recent geopolitical developments have impacted its Mediterranean and West Coast of Mexico itineraries.
These itinerary adjustments are the primary reason for the slower expected growth rate in net yields.
